The Value of Solar: A Guide for Real Estate Professionals

Transcription

1 The Value of Solar: A Guide for Real Estate Professionals

2 Who might benefit from this information? 1. Realtors 2. Appraisers 3. Homebuilders 4. Real estate investors 5. Property managers 6. HOA boards

3 Today s Schedule 1. Who we are 2. Solar and real estate values 3. Solar technology 4. Solar economics 5. Resources / Wrap-up

4 Part 1: Who we are

5 Helping communities go solar

6 We re a community of people building a new energy system with rooftop solar at the cornerstone. We help people go solar, join together, and fight for their energy rights.

7 How we got started Started in 2007 and it wasn t easy!

8 How we got started It was harder than we thought!

9 How Solar Co-ops Work What is it? Who picks the installer? Co-op members Co-op participants select specific installer criteria including: Price Equipment quality Warranties Are a local company

10 Part 2: How Solar Co-ops Work

11 Membership We re the only national organization dedicated to representing the needs and interests of solar homeowners and supporters Get expert, unbiased solar help Together we have more power

12 Questions?

13 Part 2: Solar and Real-Estate Values

14 "While selling our home over the last few weeks, every real estate agent has called after the showing to ask how the panels work. I left the book and a sheet out; having an education effort geared toward agents could be a great idea -- even if people don't buy the house with solar panels, they've learned how they work and the value they add to a home. In Gainesville the average time on market is two months, and our house sold in about a week. Yay solar!!" Alachua County, FL homeowner

15 Do You Watch HGTV? Solar adds long-term value to a home

16 Increased $ for Mortgage Quantifying the Effects of PV Solar on Home Sales Total Sale Price Increase Based on System Size Increase Based on Energy Savings Speed of Sale

17 Quantifying PV Solar Effects on Sales of Homes Solar Homes ~ Premium Prices

18 Energy Savings = Real Money

19 Solar Helps Realtors

20 Image Source: Vox.com Solar Helps Investors

21 Cost of Ownership or Occupancy Energy HOA Taxes Insurance Mortgage or Rent FHA Mortgage A mortgage is eligible for an increase of up to 20 percent in the maximum insurable mortgage amount, if such an increase is necessary for the installation of solar energy equipment. Can you afford to pay more $ for Mortgage or Rent if electricity $ is low to $0?

22 Solar Statistics (DE, NJ, NY, PA) 102,508 installations 94,150 installations 6,163 installations 22,293 installations

23 Part 2: Solar & home values Solar consistently adds value across a variety of states, housing and solar markets, and home types * * Hoen, B., S. Adomatis, T. Jackson, J. Graff-Zivin, M. Thayer, G.T. Klise, and R. Wiser Selling into the Sun: Price Premium Analysis of a Multi-State Dataset of Solar Homes. Berkeley, CA: Lawrence Berkeley National Laboratory.

24 Part 2: Solar & home values Appraising a solar home Factors impacting value determination: Location Size of system Age of system Efficiency of system Retail cost of electricity Local incentives

25 Part 2: Solar & home values Resources for appraisers: Department of Energy PV Value Tool ( allows for calculation of both cost and income approach to value Appraisal Institute s Green Building Resources ( Valuation of Sustainable Buildings Professional Development Program Publications, seminars, and webinars

26 "While selling our home over the last few weeks, every real estate agent has called after the showing to ask how the panels work. I left the book and a sheet out Break!

27 Part 3: Solar technology

28 We have a contract on our home, and we go to closing on September Our buyers were VERY impressed with our $8.20 electric bills earlier this spring. Also they thought the $60.00 was great for the summer months. SO was solar a factor in the sale? I would say so, yes." - Satellite Beach, FL homeowner (Realtor used a drone to highlight solar in the listing.)

29 Part 3: Solar technology How big will my solar array be? Available space Electricity usage Budget

30 Part 3: Solar technology How does a solar panel work? Solar photovoltaic (PV) Converts solar energy to electricity

31 Part 3: Solar technology System components: Panels Solar Array Panel / Module Image Source: DuPont

32 Part 3: Solar technology What about solar shingles? Image from tesla.com Building Integrated Photovoltaics or BIPV

33 Part 3: Solar technology What the hail? In 2017 a giant array at the National Renewable Energy Labs (NREL) of more than 3,000 panels was hit with large hail and only one panel was damaged

34 Part 3: Solar technology System components: Inverter & Racking Inverter Racking system

35 Part 3: Solar technology Different Types of Inverters Microinverters String inverter(s) Optimizers + String inverter(s)

36 Part 3: Solar technology How does solar connect to a roof?

37 Part 3: Solar technology How does solar connect to a flat roof? ballast clamps stand offs + beams pitch pockets

38 Part 3: Solar technology How does solar connect to a pitched roof? Usually flashings, or clamps

39 Part 3: Solar technology

40 Part 3: Solar technology

41 Part 3: Solar technology

42 Part 3: Solar technology Terminology: Kilowatts (kw) & Kilowatt-hours (kwh) System measured in kw Electricity production measured in kwh Most homeowners install between 3 kw 15 kw

43 Part 3: Solar technology What makes a site good for solar? Roof faces southerly direction No shading Enough space to mount panels

44 Part 3: Solar technology Image credit: solarenergy-usa.com

45 Part 3: Solar technology

46 Part 3: Solar technology What about people who can t put solar where they are? Image credit: Forbes.com

47 Part 3: Solar technology Photo credit: Vote Solar Community Solar

48 Part 3: Solar technology

49 Part 3: Solar technology What is net metering? Accounts for electricity to AND from customer When generation exceeds usage, extra electricity flows out through meter to the grid You receive a credit on your power bill for that excess production

50 Part 3: Solar technology Net metering (continued) Monthly electric bill: [Qty. electricity used] [Qty. electricity produced] Utilities required by law to let you net meter

51 Part 3: Solar technology kwh Green Solar Production Red Electric Consumption Blue is Self-Consumption

52 Part 3: Solar technology Frequently asked questions Warranties? Homeowners insurance? Maintenance? What about roof repairs? How long do systems last? Will HOAs allow solar? What about historic districts?

53 Part 3: Solar technology HOA Solar Access Laws DE - 25 Del. C NJ - Statute 45:22A-48.2 NY - No HOA solar protection PA - No HOA solar protection

54 Part 3: Solar technology Choosing a contractor Standard contracting licensure Years of solar experience Number of installations in the area References Industry certifications (NABCEP, RISE) Other factors

55 Part 3: Solar technology How long does it take? Contract sign Design & engineering Permitting & Interconnection Installation Inspection Utility approvals

56 Part 3: Solar technology What happens when the power goes out? When grid is down, solar shuts off (safety mechanism) Need batteries if you want power during outages

57 Part 3: Energy Storage for Homeowners The two main values of battery storage Backup Power for you Save money or get paid to help the Grid

58 Part 3: Energy Storage for Homeowners You might want storage if Frequent utility outages Critical loads at home (ex. well pumps, medical equipment) Emergency/disaster preparedness

59 Part 3: Energy Storage for Homeowners 6 kwh Battery Bank Fully re-charged by solar (5.6 kw) daily NOTE: No solar = 1 day only The Johnsons lose power from the utility several times of year. Each time the power is out for the entire day. What will run when the power is out: refrigerator; small microwave Some lights; Some outlets cable modem What they chose not to power: stove; dryer; electric water heater;

60 Electric Vehicles & Residential Solar 100% ELECTRIC NISSAN LEAF Go Together Like Pizza & Beer

61 EV Owners ~ Likely Solar Home Buyers

62 EV Owners ~ Likely Solar Home Buyers Solar + EV Charger co-op participants - Arlington, VA

63 "While selling our home over the last few weeks, every real estate agent has called after the showing to ask how the panels work. I left the book and a sheet out Solar Trivia!

64 Part 4: Solar economics

65 Part 4: Solar economics Solar is increasingly affordable Costs have dropped 90% since the 1970s Solar is no longer a specialty, expensive, or boutique project Comparable to cost of used car 1970 s 2013

66 Part 4: Solar economics A few considerations Solar is priced by the watt (not by the panel) $9000 / 3000 Watts (i.e. 3kW) = $3/Watt Solar is a long-term investment that reduces energy costs (>25-year lifespan) Rising energy prices higher solar value

67 Part 3: Solar economics

68 Part 3: Solar economics NJ SRECs Alternative Compliance Penalty (ACP)

69 Part 4: Solar economics Solar Financing Options Loans Standard loans Solar loans & bridge loans HELOC Grants (for farms and rural small businesses) USDA Rural Energy for America Program (REAP)

70 Cumulative Savings with Solar Assumptions SRECs not included, 2% energy increase per year, 7kW System Size, Base Price $2.75/W, 1336 yearly production of 1kW, $ starting electricity rate, -0.5% panel degradation per year, 4% Interest rate on loan, 70% of cost covered by loan, $0 Operations and Maintenance over system lifetime, Pay 80% of normal electricity cost with PPA

71 Part 4: Solar economics Cost savings for new construction Minimizes soft costs Permitting/inspecting/interconnection Install labor Electrical system equipment Economies of scale Can eliminate more than half the cost of a residential system * *

72 Part 5: Resources / Wrap-up

73 Useful Resource: Solar United Neighbors Selling Your Solar Home guide

74 Selling your Solar Home Find realtors and appraisers that know solar Demonstrate monthly energy savings Should you take the system with you? Solar loan considerations Power Purchase Agreement (PPA) or lease?

75 Selling your Solar Home PPAs and Leases Read the contract before you sell Call your provider, tell them you re moving Work with realtor to disclose to buyers Coordinate with solar provider during sale

76 Selling your Solar Home Common PPA and lease options at sale 1. Transfer PPA or lease to homebuyer 2. Prepay PPA or lease and convey solar 3. Move system to your new home 4. Pay to have system removed

77 Individual Membership Helpdesk experts help throughout the process: What are the basics of solar? How can you pay for solar? How should you choose an installer? How should you compare bids? How do you overcome a homeowners association s resistance? Long term support after installation $85 Contact our members-only Solar Help Desk for real-time advice when and where you need it.

78 Institutional Membership NEW! Everything with Individual Membership + Volume Discounts for employees or customers + Discounts on solar consulting services

79 Useful Resource: Solar United Neighbors website

80 Corey Ramsden VP, Go Solar Programs Solar United Neighbors

81 When Did You Last Use A Pay Phone? AT&T Still Exists & Utilities Will Survive Solar